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The most important work we do at CWA is at the bargaining table, gaining better wages, working conditions and terms of employ­ment for our members. But again and again, we see how many advances made at the bargaining table can be lost through a single action of Congress or a state legislature. Virtually every day Congress and state legislatures across the country make decisions that vitally affect us-regarding telecommunications policy, taxes, social security, safety and health, the budget, pensions, our children's schools. The list is endless. 

The concerns of working families are every bit as valid as those of corporate interests. Union members know that working families have the right to be heard in the American political process. Without their voice, there would be no employer-provided health care, no minimum wage, no overtime pay, no job safety protections, and no retirement or job security. 

Colorado Proposes Tough Law on Executive Accountability

Last year, forces from anti-union coalitions introduced and filed to put "Right to Work for Less" on the Colorado Ballot. These out of state sponsors have had a Colorado Legislator introduce it periodically in the State Legislature without success. Once that Initiative was introduced, workers from Colorado decided to fight back. CWA has been a major stakeholder and is committed to fighting back anywhere workplace justice is in danger.

When the Colorado AFL-CIO needed someone to be a proponent for an initiative regarding Corporate Crime, they called upon CWA because of it's ties with some of the worst corporate criminals in telecommunications history. Lew Ellingson is a Staff Representative for the Communications Workers of America and a Qwest retiree and agreed to be one of the 2 proponents of this measure. This initiative has gotten a lot of attention because it appears that some businesses believe that holding corporate criminals accountable for their crimes hurts the economy in some way. Below is an article about this Colorado struggle:

By DAN FROSCH,

DENVER — For 30 years, Lew Ellingson loved being a telephone man.

His job splicing phone cables was one that he says gave him “a true sense of accomplishment,” first for Northwestern Bell, then US West and finally Qwest Communications International.

But by the time Mr. Ellingson retired from Qwest last year at 52, he had grown angry. An insider trading scandal had damaged the company’s reputation, and the life savings of former colleagues had evaporated in the face of Qwest’s stock troubles.

“It was a good place,” he said wistfully. “And then something like this happened.”

Now, Mr. Ellingson is the public face of a proposed ballot measure in Colorado that seeks to create what supporters hope will be the nation’s toughest corporate fraud law.

Buttressed by local advocacy groups and criticized by a Colorado business organization, the measure would make business executives criminally responsible if their companies run afoul of the law. It would also permit any Colorado resident to sue the executives under such circumstances. Proceeds from successful suits would go to the state.

If passed by voters in November, the proposal would leave top business officers having unprecedented individual accountability, said Mr. Ellingson, a member of Protect Colorado’s Future, a coalition of advocacy groups that supports the initiative.

“If nothing else, these folks in charge of the corporations and companies will think twice about cutting corners to make themselves look more profitable than they really are,” he said.

The plight of Mr. Ellingson’s former employer, Qwest, based in Denver, was a motivation for the proposal, said Jess Knox, executive director of Protect Colorado’s Future.

Last April, a jury in Denver convicted Qwest’s former chief executive, Joseph P. Nacchio, of 19 of 42 counts of insider trading. Mr. Nacchio was sentenced to six years in prison and ordered to pay a fine of $19 million and forfeit $52 million in money he earned from stock sales in 2001.

In March, however, a federal appeals court panel reversed the conviction on the grounds that a judge had improperly excluded expert defense testimony.

The panel ordered that Mr. Nacchio receive a new trial in front of a different judge.

“The reality is that for years, not just in Colorado but in many states, citizen taxpayers have paid the price for C.E.O.’s and companies who break the rules in order to get ahead,” Mr. Knox said.

Ultimately, the proposal would extend criminal and civil liability to executives who knew about corporate fraud and did nothing to stop it, but who were not necessarily involved in it, said Mark Grueskin, a lawyer for Protect Colorado’s Future.

Not surprisingly, the proposal, and subsequent versions with alternative language that have been suggested by Protect Colorado’s Future, has generated sharp opposition from Colorado’s business community.

If the measure is approved, some fear that the courts will become overwhelmed with frivolous lawsuits. Those lawsuits, in turn, could bankrupt small and midsize companies and make it more difficult for legitimate lawsuits to succeed, said Joe Blake, president and chief executive of the Denver Metro Chamber of Commerce.

“We’re very concerned that any number of people could crowd the docket and frustrate the court system with suits that are perhaps well-intentioned but highly frivolous,” he said. “We’re going to have chaos out here.”

Mr. Grueskin countered that the measure would parallel current state law and require plaintiffs to pay for their lawsuits if a court ruled that they were frivolous.

“There is an inherent disincentive to use this as a means for a gadfly to act as a corporate obstructionist,” he said. “I would be surprised if there would be many responsible companies that would have a problems with this.”

Legal fees aside, Dean Krehmeyer, executive director of the Business Roundtable Institute for Corporate Ethics at the University of Virginia, which conducts ethics training for executives and directors, says the litigious nature of the measure could create a chasm between businesses and their communities.

“Leading business organizations and communities can create value by working in partnership, not necessarily by using the courts as a first option,” he said.

The measure, whose language was already approved by a state title board, must receive 76,000 signatures in support within six months to be placed on the November ballot. Protect Colorado’s Future said it planned to start a signature campaign.

A lawyer for the chamber of commerce, Doug Friednash, said the business group would file a challenge to the proposal in Colorado Supreme Court on Tuesday. He said the language could mislead voters into thinking they were supporting a measure that simply cracked down on crooked executives, as opposed to one that left business owners and other employees susceptible to lawsuits.

But Protect Colorado’s Future has already drafted a modified version, cleared by the review board, that limits the initiative to executive officials, its true intention, the group said. The chamber of commerce, has asked the board to reconsider its decision on that version at a hearing on Wednesday.

Regardless of which version of the measure is put to voters, Mr. Ellingson predicts that Coloradoans, with the fallout from Qwest still fresh, will back the proposal in overwhelming numbers.

“I don’t know who can oppose this. This is common sense,” he said. “We need businesses to survive, but we don’t need criminals running them.”

For more information,  Please visit the New York Times at: http://www.nytimes.com/2008/04/01/business/01fraud.html?ref=business&pagewanted=print

"The Voice of the People"

 By Laura Roybal 

Spurred on by President Cohen’s call to action, CWA Local 7019's officers and members with support from IBEW and AFSCME, met at Senator John McCain’s Phoenix office to ask the Senator to support the Employee Free Choice Act.   

The Senator was unavailable to meet with his constituents, to address our concerns or allow us the opportunity to ask for his support. The Senator was out of the office drumming up support for his current campaign  As of May 31st, Senator McCain has not lent his support to this important legislation.  

As employees represented by CWA, we have not seen the fight that others see when trying to form a union.  We don’t see how companies intimidate employees with their jobs if they’re even caught talking to a union representative. The Employee Free Choice Act is supported by many Legislators and will ensure that workers can form a union without the fear of retaliation.  However, Senator John McCain (R) has not seen fit to make his position known on this very important issue. CWA took it to his office and the streets.

The Senator's Lobby Area

DFLers Push Call-Center Option Bill

They want alternative to foreign centers when personal or financial information is involved.

State Representative Joe Atkins was talking on the phone with a computer company's customer representative recently when he asked the technician, "What's up with that?' "And she said, 'Up where?' " said Atkins, DFL-Inver Grove Heights. Only after more conversation did he discover that she was unfamiliar with American idioms and had answered from a call center in New Delhi, India, Atkins said.

Fueled by increasing consumer concerns about the explosive growth of offshore call centers, and more specifically about the security of information transmitted to foreigners, Atkins and other DFLers are pushing for legislation that would entitle Minnesotans to request an alternative U.S. call center if personal or financial information is being sought.

The bill, sponsored by Atkins and Sen. Dan Sparks, DFL-Austin, also would require those on the other end of the line to disclose, if asked, what country they are in.

"We're getting more complaints from folks who say they can't understand customer service people, with the language barrier, and people are extra nervous about giving out personal information," Sparks said.

Versions of the "where-are-you" and "give-me-an-American-number" proposals have been pushed for at least a couple of years at the Legislature. They were opposed by businesses and have been modified to address corporate concerns. Business interests are studying it, willing to work further with sponsors, but still haven't approved it, said Tom Hesse, vice president for governmental affairs of the Minnesota Chamber of Commerce.

"Any time one state wants to regulate interstate or international commerce, it raises red flags," Hesse said. Federal laws that address identity theft are sufficient to protect consumers dealing with companies that use foreign call centers, Hesse said. Companies concerned about the bill include financial institutions, health-care companies and retailers, he said.

Atkins scoffed at the idea that Minnesota can't regulate international commerce. "We do it all the time. If they are doing business here, they are subject to Minnesota law, and it doesn't matter if they are in Pakistan or India."

Labor power

The sponsors acknowledge that an impetus for the bills is organized labor's support, specifically the Communications Workers of America (CWA). Union leaders say hundreds of thousands of communication and information technology jobs have been "outsourced" to foreign countries, especially India, in the past decade.

The legislation might not have much effect on the continuing outsourcing of American jobs, said Tim Lovaasen, president of the Minnesota council of the CWA, adding that it really serves as more of an "awareness bill" than a solution to the problem.

"If enough people raise enough stink about this, maybe they'll bring a service center or two back to the United States," Lovaasen said. "And there is very legitimate fear about identify theft. If it happens in a foreign country, it can be very hard to prosecute, and you are in big trouble."

Some form of the legislation might be pushed by the new Democratic majorities in Congress. A Call Center Consumer's Right to Know Act was introduced by Sen. John Kerry in 2003. Atkins said Democratic majorities in Washington and St. Paul give the bills new life.

A Minnesota legislator with roots in India, Sen. Satveer Chaudhary, R-Fridley, said he is concerned that some support for the bill is driven by resentment of foreigners and "jingoism."I have just as many difficulties dealing with call centers in Louisiana," he said.

But any effort to help consumers and encourage more call centers in Minnesota, especially in rural areas, makes sense, Chaudhary said. "We shouldn't be off-shoring, we should be North-Shoring," Chaudhary said, referring to efforts to establish call centers in economically distressed rural areas, especially northeastern Minnesota.

Strong support for the legislation is building in the union stronghold of the Iron Range, said Sen. David Tomassoni, DFL-Chisholm. He said call centers for Northwest Airlines and Blue Cross-Blue Shield are doing well on the Range.

Dane Smith • 651-292-0164 • rdsmith@startribune.com 

 


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Last updated: April 21, 2008.